TIDMSTA
RNS Number : 5785G
Stagecoach Theatre Arts PLC
03 February 2010
Embargoed until 0700 on 3 February 2010
Stagecoach Theatre Arts plc (AIM: STA)
("Stagecoach" or "the Group")
Interim Results
for the half year ended 30 November 2009
"Stagecoach Theatre Arts plc operates the UK's largest franchise network of
part-time performing arts schools for children aged between 4 and 18"
"SATISFACTORY PERFORMANCE IN DIFFICULT ECONOMIC CLIMATE"
Highlights:
Financial
· Satisfactory performance in difficult economic environment, with trading
and underlying profitability of the Group similar to prior period.
· Profit before tax was GBP267,000 (2008: GBP333,000) - the reduction in
profit compared to last year predominantly reflects a write-back of provision in
the prior period.
· Network fees, which reflect total school fees earned over the period by
franchisees, were down fractionally by 1% to GBP13.1 million (2008: GBP13.3
million). Group revenue was GBP3.0 million (2008: GBP3.1 million).
· Healthy net cash balance of GBP1.3 million as at 30 November 2009 (2008:
GBP1.4 million).
· Earnings per share were 1.9 pence (2008: 2.5 pence).
· Interim dividend maintained at 0.5 pence per share (2008: 0.5 pence).
Operational
· German operations have had a very good start to the year with six new
schools opening in September 2009, an increase of 40% to a total of 21 schools -
moving towards critical mass for profitability.
· Total number of students during the Autumn Term 2009 increased from the
Summer Term 2009 by 1% from 38,927 to 39,321 students.
· The Stagecoach Agency saw the total of individual submissions for jobs in
the first six months of the year increase significantly from the prior year to
13,500, resulting in approximately 4,000 auditions or bookings.
· The Stagecoach Board remains committed to bringing each part of the
business to profitability. With the new school openings in Germany, the Group
remains on track for achieving this goal by the year ending 31 May 2011.
David Sprigg, Managing Director, commented:
"As for many businesses, this has been another tough six months. However, the
effects of the recession and swine flu have had a minimal impact on the sales
and underlying profitability of the business, and we have seen an increase in
student numbers from the Summer Term 2009 to Autumn Term 2009. This
demonstrates the popularity of our Stagecoach Theatre Arts schools training and
education and the resilience of our business model."
Enquiries:
+---------------------------------------+------------------------------------+
| Stagecoach Theatre Arts plc | Tel: 01932 254 333 / 07775 |
| Richard Dawson, Finance Director and | 643 939 |
| Head of Investor Relations | rdawson@stagecoach.co.uk |
| | www.stagecoach.co.uk |
| | |
+---------------------------------------+------------------------------------+
| | |
+---------------------------------------+------------------------------------+
| Smith & Williamson Corporate Finance | Tel: 020 7131 4000 |
| Limited Nominated Adviser & Joint | |
| Broker | |
| David Jones / Siobhan Sergeant / | |
| Barrie Newton | |
+---------------------------------------+------------------------------------+
| | |
| Daniel Stewart & Company plc | Tel: 020 7776 6550 |
| Joint Broker | |
| Paul Shackleton / Oscar Louzada | |
+---------------------------------------+------------------------------------+
| | |
| Peckwater PR | Tel: 07879 458 364 |
+---------------------------------------+------------------------------------+
| Tarquin Edwards | Tarquin.Edwards@peckwaterpr.co.uk |
+---------------------------------------+------------------------------------+
Chairman's Statement
Results and Overview
The Stagecoach Group continues to perform satisfactorily throughout this
difficult economic climate. Profit before income tax for the six months to 30
November 2009 was GBP267,000 (2008: GBP333,000). The reduction in profit
compared to the prior period predominantly reflects a write-back of provision in
the prior period, as the actual cost of closure of the Mini Stages franchises
was less than originally expected when the provision for closure was recorded in
the 2008 financial statements. The underlying trading and performance of the
Group remains similar to the same period last year.
The total number of students attending our 701 schools and 778 Early Stages and
Early Sporties classes during the Autumn Term 2009 increased from the Summer
Term 2009 by 1% from 38,927 to 39,321 students. Although student numbers are
lower than the prior year (just over 40,000 before the recession), the recent
increase in student numbers is encouraging.
Network fees, which reflect total school fees earned over the period by our
franchisees, have decreased 1% to GBP13.1 million (2008: GBP13.3 million).
Group revenue was GBP3.0 million (2008: GBP3.1 million).
The Group retains a healthy net cash balance of GBP1.3 million as at 30 November
2009 (2008: GBP1.4 million). Earnings per share for the six month period were
1.9 pence (2008: 2.5 pence). We are pleased to maintain the level of interim
dividend of 0.5 pence per share (2008: 0.5 pence). This interim dividend which
amounts to GBP49,722 will be paid on 17 March 2010 to those shareholders on the
register as at 19 February 2010.
Operating Performance
UK Operations
The number of Stagecoach Theatre Arts schools in the UK and students attending
during the Autumn Term 2009 has increased to 623 schools, 719 Early Stages
classes and 35,273 students, up from 35,067 students in the Summer Term 2009.
This is still below the prior year peak before the recession (2008: 625 schools,
712 Early Stages classes and 35,821 students).
There has been a small decrease in average student numbers per main school to
41.3 students (2008: 41.9) and Early Stages to 13.0 students (2008: 13.2),
although over 92% of all available places are still taken.
The Stagecoach Agency maintains its status as the largest performing arts agency
for children in Europe and continues to provide our students with varied work
across all areas of the entertainment industry. Our September 2009 intake
numbered 1,605 (2008: 2,043). The total of individual submissions for jobs in
the first six months of the year increased significantly from the prior year to
13,500, resulting in approximately 4,000 auditions or bookings.
We have enjoyed another busy six months for large-scale performances and events
across the network. In June 2009 over 300 students performed at Her Majesty's
Theatre in London's West End. In August we staged our annual showcase, the
musical Unsinkable, an original musical written specifically for Stagecoach, at
the Leatherhead Theatre featuring 75 students from schools in the UK, Ireland,
USA, Spain and Germany. In November, another 300 Stagecoach students again
performed at Her Majesty's Theatre.
Our SportsCoach network has 22 SportsCoach schools, 10 Early Sporties Classes
and 849 students (2008: 24 schools, 8 Early Sporties and 1,000 students).
Following the planned closure of the final few Mini Stages independent
franchises, there are just 197 Mini Stages students and 106 Montessori nursery
students (2008: 349 and 104 students respectively).
International Operations
Our German operations have had a very good start to the year with six new
schools opening in September 2009, an increase of 40% to a total of 21 schools.
Such growth takes us closer to achieving the critical mass of schools required
for the German subsidiary to move into profitability. There has been no further
growth in the number of schools for our US operations.
In our overseas markets, comprising Germany, USA, Malta, Ireland, Canada, Spain,
Greece and Australia, there are now 56 Stagecoach schools, 49 Early Stages
classes, 3 Further Stages classes, 12 Mini Stages sessions and a total of 2,896
students (2008: 52 Stagecoach schools, 55 Early Stages classes, 3 Further Stages
classes, 12 Mini Stages sessions and a total of 2,838 students).
Strategy
Your Board remains committed to bringing each part of our business to
profitability. With the new school openings in Germany we remain on track for
achieving this goal by the year ending 31 May 2011. We continue to invest in
the German market, taking a medium to long term view that Stagecoach Germany has
the most potential to emulate the success of Stagecoach UK.
Our key objectives remain as follows:
· further growth in the UK
· growth from our other networks (International, SportsCoach)
· maintain a tight management of costs, and thus maintain our cash reserves
· continue to provide a return to shareholders with a progressive dividend
policy
The Group also continues to support The Stagecoach Charitable Trust, which runs
InterAct classes and theatre workshops, providing inclusive performing arts
tuition to children of all abilities and needs.
On 3 December 2009, the Directors of Stagecoach Theatre Arts proudly launched
The Stagecoach Theatre Arts Awards, Acknowledging and Rewarding Children's
Achievements during 2009/2010. The launch reception took place at The House of
Commons hosted by Ed Vaizey MP, Shadow Arts Minister. Patrons of these awards
are Viscountess Mackintosh of Halifax and Sir Bernard Ingham. The Awards will
recognise, acknowledge and reward young people from all walks of life who have
faced adversity, demonstrated bravery, shown courage, cared for others or been
good role models for young citizens. Students from The Stagecoach Charitable
Trust's InterAct performed for guests at the Awards launch party.
Current Trading and Future Prospects
As for many businesses, this has been another challenging six months. However,
the effects of the recession and swine flu have had a minimal impact on the
sales and underlying profitability of the business, and we have seen an increase
in student numbers from the Summer Term 2009 to Autumn Term 2009. This
demonstrates the popularity of our Stagecoach Theatre Arts schools training and
education and the resilience of our business model.
However, we are not entirely immune to the effects of recession: the economic
climate has already contributed to a few school closures and to other
franchisees choosing to postpone plans to expand their businesses. The severe
weather conditions in early January may also impact on student recruitment for
our franchisees as their marketing and advertising campaigns, and open meetings
and first days of term were disrupted. However, we do not expect this to have a
significant effect on our results for the full year.
We have increased our investment in online marketing and other promotional
activity to maintain our market presence and brand awareness. We continue to
offer the highest standards of education in performing arts and sports tuition
for children.
Graham Cole
Chairman
Responsibility Statement of Directors
in respect of the Half-year Report
We confirm that to the best of our knowledge:
(a) The condensed set of financial statements has been prepared in accordance
with IAS34 "Interim Financial Reporting" as adopted by the EU.
(b) The half-year management report includes a fair review of the information
required by:
· DTR 4.2.7R of the Disclosure and Transparency Rules, being an indication of
important events that have occurred during the first six months of the financial
year and their impact on the condensed half-year financial statements; and a
description of the principal risks and uncertainties of the remaining six months
of the year; and
· DTR 4.2.8R of the Disclosure and Transparency Rules, being related party
transactions that have taken place in the first six months of the current
financial year and that have materially affected the financial position or
performance of the entity during that period; and any changes in the related
party transactions described in the last annual report that could do so.
By Order of the Board:
+-------------------------------------+-------------------------+
| David Sprigg | Stephanie Manuel |
| Joint Managing Director | Artistic Director and |
| | Joint Managing Director |
+-------------------------------------+-------------------------+
Unaudited Condensed Consolidated Statement of Comprehensive Income
For the six months ended 30 November 2009
+--------------------------+-------+---------+----------+---------+----------+---------+
| | | Six months ended | | Year |
| | | | | ended |
+--------------------------+-------+------------------------------+----------+---------+
| | | 30 Nov | | 30 Nov | | 31 May |
+--------------------------+-------+---------+----------+---------+----------+---------+
| | | 2009 | | 2008 | | 2009 |
+--------------------------+-------+---------+----------+---------+----------+---------+
| | Notes | GBP'000 | | GBP'000 | | GBP'000 |
+--------------------------+-------+---------+----------+---------+----------+---------+
| | | | | | | |
+--------------------------+-------+---------+----------+---------+----------+---------+
| | | | | | | |
+--------------------------+-------+---------+----------+---------+----------+---------+
| Network fees (see note) | 2 | 13,095 | | 13,275 | | 29,435 |
+--------------------------+-------+---------+----------+---------+----------+---------+
| | | | | | | |
+--------------------------+-------+---------+----------+---------+----------+---------+
| | | | | | | |
+--------------------------+-------+---------+----------+---------+----------+---------+
| Revenue | 2 | 3,034 | | 3,054 | | 6,204 |
+--------------------------+-------+---------+----------+---------+----------+---------+
| Cost of sales | | (1,696) | | (1,807) | | (3,203) |
+--------------------------+-------+---------+----------+---------+----------+---------+
| | | | | | | |
+--------------------------+-------+---------+----------+---------+----------+---------+
| Gross profit | | 1,338 | | 1,247 | | 3,001 |
+--------------------------+-------+---------+----------+---------+----------+---------+
| Other operating income | | 12 | | 12 | | 23 |
+--------------------------+-------+---------+----------+---------+----------+---------+
| Administrative expenses | | (1,087) | | (950) | | (2,327) |
+--------------------------+-------+---------+----------+---------+----------+---------+
| | | | | | | |
+--------------------------+-------+---------+----------+---------+----------+---------+
| Operating profit | 2 | 263 | | 309 | | 697 |
+--------------------------+-------+---------+----------+---------+----------+---------+
| Financial income | | 6 | | 28 | | 39 |
+--------------------------+-------+---------+----------+---------+----------+---------+
| Financial expenses | | (2) | | (4) | | (10) |
+--------------------------+-------+---------+----------+---------+----------+---------+
| | | | | | | |
+--------------------------+-------+---------+----------+---------+----------+---------+
| Net financing income | | 4 | | 24 | | 29 |
+--------------------------+-------+---------+----------+---------+----------+---------+
| | | | | | | |
+--------------------------+-------+---------+----------+---------+----------+---------+
| Profit before income tax | | 267 | | 333 | | 726 |
+--------------------------+-------+---------+----------+---------+----------+---------+
| Income tax expense | 3 | (80) | | (91) | | (200) |
+--------------------------+-------+---------+----------+---------+----------+---------+
| | | | | | | |
+--------------------------+-------+---------+----------+---------+----------+---------+
| Profit for the period | | 187 | | 242 | | 526 |
+--------------------------+-------+---------+----------+---------+----------+---------+
| | | | | | | |
+--------------------------+-------+---------+----------+---------+----------+---------+
| Other comprehensive | | | | | | |
| income | | | | | | |
+--------------------------+-------+---------+----------+---------+----------+---------+
| Foreign currency | | (3) | | (1) | | (44) |
| translation differences | | | | | | |
| for foreign operations | | | | | | |
+--------------------------+-------+---------+----------+---------+----------+---------+
| | | | | | | |
+--------------------------+-------+---------+----------+---------+----------+---------+
| Total comprehensive | | 184 | | 241 | | 482 |
| income for the period | | | | | | |
+--------------------------+-------+---------+----------+---------+----------+---------+
| | | | | | | |
+--------------------------+-------+---------+----------+---------+----------+---------+
| | | | | | | |
+--------------------------+-------+---------+----------+---------+----------+---------+
| Profit for the period | | | | | | |
| attributable to: | | | | | | |
+--------------------------+-------+---------+----------+---------+----------+---------+
| Equity holders of the | | 187 | | 242 | | 526 |
| parent | | | | | | |
+--------------------------+-------+---------+----------+---------+----------+---------+
| | | | | | | |
+--------------------------+-------+---------+----------+---------+----------+---------+
| | | | | | | |
+--------------------------+-------+---------+----------+---------+----------+---------+
| Total comprehensive | | | | | | |
| income for the period | | | | | | |
| attributable to: | | | | | | |
+--------------------------+-------+---------+----------+---------+----------+---------+
| Equity holders of the | | 184 | | 241 | | 482 |
| parent | | | | | | |
+--------------------------+-------+---------+----------+---------+----------+---------+
| | | | | | | |
+--------------------------+-------+---------+----------+---------+----------+---------+
| | | | | | | |
+--------------------------+-------+---------+----------+---------+----------+---------+
| Earnings per share | | | | | | |
| (pence) | | | | | | |
+--------------------------+-------+---------+----------+---------+----------+---------+
| - Basic earnings per | 5 | 1.9 | | 2.5 | | 5.3 |
| share | | | | | | |
+--------------------------+-------+---------+----------+---------+----------+---------+
| - Diluted earnings | 5 | 1.9 | | 2.4 | | 5.3 |
| per share | | | | | | |
+--------------------------+-------+---------+----------+---------+----------+---------+
Note: Network fees represent total school fees earned over the period by our
franchisees from the students that attended Stagecoach, SportsCoach and Mini
Stages worldwide.
Unaudited Condensed Consolidated Statement of Changes in Equity
For the six month period ended 30 November 2009
+----------------+---------+---------+-------------+---------+---------+
| | Share | Share | Translation | Profit | Total |
| | capital | premium | reserve | and | |
| | | | | loss | |
| | | | | account | |
+----------------+---------+---------+-------------+---------+---------+
| | GBP'000 | GBP'000 | GBP'000 | GBP'000 | GBP'000 |
+----------------+---------+---------+-------------+---------+---------+
| | | | | | |
+----------------+---------+---------+-------------+---------+---------+
| At 1 June 2008 | 494 | 1,601 | (35) | 916 | 2,976 |
+----------------+---------+---------+-------------+---------+---------+
| Profit for the | - | - | - | 242 | 242 |
| six months | | | | | |
| ended 30 | | | | | |
| November 2008 | | | | | |
+----------------+---------+---------+-------------+---------+---------+
| Dividends paid | - | - | - | (197) | (197) |
+----------------+---------+---------+-------------+---------+---------+
| Exchange | - | - | (1) | - | (1) |
| differences on | | | | | |
| translation of | | | | | |
| foreign | | | | | |
| operations | | | | | |
+----------------+---------+---------+-------------+---------+---------+
| | | | | | |
+----------------+---------+---------+-------------+---------+---------+
| Balance at 30 | 494 | 1,601 | (36) | 961 | 3,020 |
| Nov 2008 | | | | | |
+----------------+---------+---------+-------------+---------+---------+
| | | | | | |
+----------------+---------+---------+-------------+---------+---------+
| Profit for the | - | - | - | 284 | 284 |
| six months | | | | | |
| ended 31 May | | | | | |
| 2009 | | | | | |
+----------------+---------+---------+-------------+---------+---------+
| Dividends paid | - | - | - | (49) | (49) |
+----------------+---------+---------+-------------+---------+---------+
| Share-based | - | - | - | 7 | 7 |
| payments | | | | | |
+----------------+---------+---------+-------------+---------+---------+
| Exchange | - | - | (43) | - | (43) |
| differences on | | | | | |
| translation of | | | | | |
| foreign | | | | | |
| operations | | | | | |
+----------------+---------+---------+-------------+---------+---------+
| Shares issued | 1 | 8 | - | - | 9 |
+----------------+---------+---------+-------------+---------+---------+
| | | | | | |
+----------------+---------+---------+-------------+---------+---------+
| Balance at 31 | 495 | 1,609 | (79) | 1,203 | 3,228 |
| May 2009 | | | | | |
+----------------+---------+---------+-------------+---------+---------+
| | | | | | |
+----------------+---------+---------+-------------+---------+---------+
| Profit for the | - | - | - | 187 | 187 |
| six months | | | | | |
| ended 30 | | | | | |
| November 2009 | | | | | |
+----------------+---------+---------+-------------+---------+---------+
| Dividends paid | - | - | - | (199) | (199) |
+----------------+---------+---------+-------------+---------+---------+
| Share-based | - | - | - | (23) | (23) |
| payments | | | | | |
+----------------+---------+---------+-------------+---------+---------+
| Exchange | - | - | (3) | - | (3) |
| differences on | | | | | |
| translation of | | | | | |
| foreign | | | | | |
| operations | | | | | |
+----------------+---------+---------+-------------+---------+---------+
| Shares issued | 2 | 10 | - | - | 12 |
+----------------+---------+---------+-------------+---------+---------+
| | | | | | |
+----------------+---------+---------+-------------+---------+---------+
| Balance at 30 | 497 | 1,619 | (82) | 1,168 | 3,202 |
| Nov 2009 | | | | | |
+----------------+---------+---------+-------------+---------+---------+
Unaudited Condensed Consolidated Statement of Financial Position
As at 30 November 2009
+--------------------------+-----+---------+----------+---------+----------+---------+
| | | 30 Nov | | 30 Nov | | 31 May |
| | | | | | | |
+--------------------------+-----+---------+----------+---------+----------+---------+
| | | 2009 | | 2008 | | 2009 |
+--------------------------+-----+---------+----------+---------+----------+---------+
| | | GBP'000 | | GBP'000 | | GBP'000 |
+--------------------------+-----+---------+----------+---------+----------+---------+
| | | | | | | |
+--------------------------+-----+---------+----------+---------+----------+---------+
| Non-current assets | | | | | | |
+--------------------------+-----+---------+----------+---------+----------+---------+
| Property, plant and | | 82 | | 98 | | 92 |
| equipment | | | | | | |
+--------------------------+-----+---------+----------+---------+----------+---------+
| Intangible assets - | | 981 | | 981 | | 981 |
| Goodwill | | | | | | |
+--------------------------+-----+---------+----------+---------+----------+---------+
| Intangible assets - | | 270 | | 330 | | 279 |
| Computer software | | | | | | |
+--------------------------+-----+---------+----------+---------+----------+---------+
| | | | | | | |
+--------------------------+-----+---------+----------+---------+----------+---------+
| Total non-current assets | | 1,333 | | 1,409 | | 1,352 |
+--------------------------+-----+---------+----------+---------+----------+---------+
| | | | | | | |
+--------------------------+-----+---------+----------+---------+----------+---------+
| Current assets | | | | | | |
+--------------------------+-----+---------+----------+---------+----------+---------+
| Inventories | | 269 | | 296 | | 245 |
+--------------------------+-----+---------+----------+---------+----------+---------+
| Trade and other | | 1,440 | | 1,178 | | 2,182 |
| receivables | | | | | | |
+--------------------------+-----+---------+----------+---------+----------+---------+
| Cash and cash | | 1,308 | | 1,380 | | 1,037 |
| equivalents | | | | | | |
+--------------------------+-----+---------+----------+---------+----------+---------+
| | | | | | | |
+--------------------------+-----+---------+----------+---------+----------+---------+
| Total current assets | | 3,017 | | 2,854 | | 3,464 |
+--------------------------+-----+---------+----------+---------+----------+---------+
| | | | | | | |
+--------------------------+-----+---------+----------+---------+----------+---------+
| | | | | | | |
+--------------------------+-----+---------+----------+---------+----------+---------+
| Total assets | | 4,350 | | 4,263 | | 4,816 |
+--------------------------+-----+---------+----------+---------+----------+---------+
| | | | | | | |
+--------------------------+-----+---------+----------+---------+----------+---------+
| | | | | | | |
+--------------------------+-----+---------+----------+---------+----------+---------+
| Equity | | | | | | |
+--------------------------+-----+---------+----------+---------+----------+---------+
| Share capital | | 497 | | 494 | | 495 |
+--------------------------+-----+---------+----------+---------+----------+---------+
| Share premium | | 1,619 | | 1,601 | | 1,609 |
+--------------------------+-----+---------+----------+---------+----------+---------+
| Translation reserve | | (82) | | (36) | | (79) |
+--------------------------+-----+---------+----------+---------+----------+---------+
| Retained earnings | | 1,168 | | 961 | | 1,203 |
+--------------------------+-----+---------+----------+---------+----------+---------+
| | | | | | | |
+--------------------------+-----+---------+----------+---------+----------+---------+
| Total equity | | 3,202 | | 3,020 | | 3,228 |
+--------------------------+-----+---------+----------+---------+----------+---------+
| | | | | | | |
+--------------------------+-----+---------+----------+---------+----------+---------+
| Non-current liabilities | | | | | | |
+--------------------------+-----+---------+----------+---------+----------+---------+
| Other interest-bearing | | - | | 25 | | - |
| loans and borrowings | | | | | | |
+--------------------------+-----+---------+----------+---------+----------+---------+
| Deferred tax liabilities | | 4 | | 16 | | 8 |
+--------------------------+-----+---------+----------+---------+----------+---------+
| | | | | | | |
+--------------------------+-----+---------+----------+---------+----------+---------+
| Total non-current | | 4 | | 41 | | 8 |
| liabilities | | | | | | |
+--------------------------+-----+---------+----------+---------+----------+---------+
| | | | | | | |
+--------------------------+-----+---------+----------+---------+----------+---------+
| Current liabilities | | | | | | |
+--------------------------+-----+---------+----------+---------+----------+---------+
| Other interest-bearing | | 25 | | 59 | | 50 |
| loans and borrowings | | | | | | |
+--------------------------+-----+---------+----------+---------+----------+---------+
| Trade and other payables | | 1,119 | | 1,143 | | 1,530 |
+--------------------------+-----+---------+----------+---------+----------+---------+
| | | | | | | |
+--------------------------+-----+---------+----------+---------+----------+---------+
| Total current | | 1,144 | | 1,202 | | 1,580 |
| liabilities | | | | | | |
+--------------------------+-----+---------+----------+---------+----------+---------+
| | | | | | | |
+--------------------------+-----+---------+----------+---------+----------+---------+
| | | | | | | |
+--------------------------+-----+---------+----------+---------+----------+---------+
| Total liabilities | | 1,148 | | 1,243 | | 1,588 |
+--------------------------+-----+---------+----------+---------+----------+---------+
| | | | | | | |
+--------------------------+-----+---------+----------+---------+----------+---------+
| | | | | | | |
+--------------------------+-----+---------+----------+---------+----------+---------+
| Total equity and | | 4,350 | | 4,263 | | 4,816 |
| liabilities | | | | | | |
+--------------------------+-----+---------+----------+---------+----------+---------+
Unaudited Condensed Consolidated Statement of Cash Flows
For the six month period ended 30 November 2009
+---------------------------------+---------+----------+---------+----------+---------+
| | Six months ended | | Year |
| | | | ended |
+---------------------------------+------------------------------+----------+---------+
| | 30 Nov | | 30 Nov | | 31 May |
+---------------------------------+---------+----------+---------+----------+---------+
| | 2009 | | 2008 | | 2009 |
+---------------------------------+---------+----------+---------+----------+---------+
| | GBP'000 | | GBP'000 | | GBP'000 |
+---------------------------------+---------+----------+---------+----------+---------+
| | | | | | |
+---------------------------------+---------+----------+---------+----------+---------+
| Cash flows from operating | | | | | |
| activities | | | | | |
+---------------------------------+---------+----------+---------+----------+---------+
| Profit for the period | 187 | | 242 | | 526 |
+---------------------------------+---------+----------+---------+----------+---------+
| Adjustment for: | | | | | |
+---------------------------------+---------+----------+---------+----------+---------+
| Depreciation and amortisation | 83 | | 77 | | 156 |
+---------------------------------+---------+----------+---------+----------+---------+
| Foreign exchange differences | (2) | | (8) | | (52) |
+---------------------------------+---------+----------+---------+----------+---------+
| Financial income | (6) | | (28) | | (39) |
+---------------------------------+---------+----------+---------+----------+---------+
| Financial expense | 2 | | 4 | | 10 |
+---------------------------------+---------+----------+---------+----------+---------+
| Loss on disposal of property, | - | | 1 | | 3 |
| plant and equipment | | | | | |
+---------------------------------+---------+----------+---------+----------+---------+
| Write-down of territories held | - | | - | | 45 |
| for resale | | | | | |
+---------------------------------+---------+----------+---------+----------+---------+
| Employee share option scheme | (23) | | - | | 7 |
+---------------------------------+---------+----------+---------+----------+---------+
| Income tax expense | 80 | | 91 | | 200 |
+---------------------------------+---------+----------+---------+----------+---------+
| Operating profit before changes | 321 | | 379 | | 856 |
| in working capital and | | | | | |
| provisions | | | | | |
+---------------------------------+---------+----------+---------+----------+---------+
| Decrease in trade and other | 744 | | 1,183 | | 182 |
| receivables | | | | | |
+---------------------------------+---------+----------+---------+----------+---------+
| (Increase)/decrease in | (24) | | 8 | | 13 |
| inventories | | | | | |
+---------------------------------+---------+----------+---------+----------+---------+
| Decrease in trade and other | (370) | | (665) | | (288) |
| payables | | | | | |
+---------------------------------+---------+----------+---------+----------+---------+
| | | | | | |
+---------------------------------+---------+----------+---------+----------+---------+
| Cash generated from the | 671 | | 905 | | 763 |
| operations | | | | | |
+---------------------------------+---------+----------+---------+----------+---------+
| Interest received | 6 | | 28 | | 39 |
+---------------------------------+---------+----------+---------+----------+---------+
| Interest paid | (4) | | (4) | | (10) |
+---------------------------------+---------+----------+---------+----------+---------+
| Income tax paid | (126) | | (259) | | (350) |
+---------------------------------+---------+----------+---------+----------+---------+
| | | | | | |
+---------------------------------+---------+----------+---------+----------+---------+
| Net cash from operating | 547 | | 670 | | 442 |
| activities | | | | | |
+---------------------------------+---------+----------+---------+----------+---------+
| | | | | | |
+---------------------------------+---------+----------+---------+----------+---------+
| Cash flows from investing | | | | | |
| activities | | | | | |
+---------------------------------+---------+----------+---------+----------+---------+
| Acquisition of additional | - | | (82) | | (99) |
| shares in subsidiary | | | | | |
+---------------------------------+---------+----------+---------+----------+---------+
| Acquisition of property, plant | - | | (11) | | (20) |
| and equipment | | | | | |
+---------------------------------+---------+----------+---------+----------+---------+
| Acquisition of intangible | (64) | | - | | (15) |
| assets | | | | | |
+---------------------------------+---------+----------+---------+----------+---------+
| | | | | | |
+---------------------------------+---------+----------+---------+----------+---------+
| Net cash used in investing | (64) | | (93) | | (134) |
| activities | | | | | |
+---------------------------------+---------+----------+---------+----------+---------+
| | | | | | |
+---------------------------------+---------+----------+---------+----------+---------+
| Cash flows from financing | | | | | |
| activities | | | | | |
+---------------------------------+---------+----------+---------+----------+---------+
| Shares issued | 12 | | - | | 9 |
+---------------------------------+---------+----------+---------+----------+---------+
| Dividends paid | (199) | | (197) | | (246) |
+---------------------------------+---------+----------+---------+----------+---------+
| Repayment of borrowings | (25) | | (32) | | (66) |
+---------------------------------+---------+----------+---------+----------+---------+
| | | | | | |
+---------------------------------+---------+----------+---------+----------+---------+
| Net cash used in financing | (212) | | (229) | | (303) |
| activities | | | | | |
+---------------------------------+---------+----------+---------+----------+---------+
| | | | | | |
+---------------------------------+---------+----------+---------+----------+---------+
| Net increase in cash and cash | 271 | | 348 | | 5 |
| equivalents | | | | | |
+---------------------------------+---------+----------+---------+----------+---------+
| Cash and cash equivalents at | 1,037 | | 1,032 | | 1,032 |
| beginning of the period | | | | | |
+---------------------------------+---------+----------+---------+----------+---------+
| | | | | | |
+---------------------------------+---------+----------+---------+----------+---------+
| Cash and cash equivalents at | 1,308 | | 1,380 | | 1,037 |
| end of the period | | | | | |
+---------------------------------+---------+----------+---------+----------+---------+
Notes to the Unaudited Condensed Consolidated Half-year Financial Statements
For the six month period ended 30 November 2009
1. Accounting Policies
General
Stagecoach Theatre Arts plc is a company incorporated in the UK.
The condensed consolidated half-year financial statements for the six months
ended 30 November 2009 consolidate those of the Company and its subsidiaries
(together referred to as the 'Group').
Statement of compliance
The Group's consolidated annual financial statements have been prepared in
accordance with International Financial Reporting Standards as adopted by the EU
('Adopted IFRSs'). These condensed consolidated half-year financial statements
have been prepared in accordance with International Accounting Standard 34
'Interim Financial Reporting', as adopted by the EU. They do not include all of
the information for full consolidated annual financial statements, and should be
read in conjunction with the Group's consolidated annual financial statements
for the year ended 31 May 2009, which are available upon request from the
Company's registered office or at www.stagecoach.co.uk.
The comparative figures for the financial year ended 31 May 2009 are not the
Company's statutory accounts for that financial year and do not constitute the
statutory accounts as defined in section 240 of the Companies Act 2006. Those
accounts have been reported on by the Company's auditors and delivered to the
registrar of companies. The report of the auditors was (i) unqualified, (ii)
did not include a reference to any matters to which the auditors drew attention
by way of emphasis without qualifying their report, and (iii) did not contain a
statement under section 237(2) or (3) of the Companies Act 2006.
These condensed consolidated half-year financial statements were approved by the
Board of Directors on 3 February 2010.
Basis of preparation
Except as described below, the same accounting policies and presentation methods
of computation are followed in the condensed consolidated half-year financial
statements as applied in the Group's latest consolidated annual audited
financial statements for the year ended 31 May 2009.
The Group has considerable financial resources together with long-term contracts
with a number of customers and suppliers across different geographic areas. As
a consequence, the Directors believe that the Group is well placed to manage its
business risks successfully despite the current uncertain economic outlook.
After making enquiries, the Directors have a reasonable expectation that the
Company and the Group have adequate resources to continue in operational
existence for the foreseeable future. Accordingly, they continue to adopt the
going concern basis in preparing the half-year report and financial statements.
Changes in accounting policy
In the current financial year the Group has adopted IAS 1 'Presentation of
Financial Statements (Revised 2007)' and IFRS 8 'Operating Segments', which
became effective as of 1 January 2009.
IAS 1 'Presentation of Financial Statements (Revised 2007)' includes the
requirement to present a Statement of Changes in Equity as a primary statement
and introduces the possibility of either a single Statement of Comprehensive
Income (combining the Income Statement and a Statement of Comprehensive Income)
or to retain the Income Statement with a supplementary Statement of
Comprehensive Income. The first option has been adopted by the Group. As this
standard is concerned with presentation only, it does not have any impact on the
results or net assets of the Group.
IFRS 8 'Operating Segments' requires operating segments to be identified on the
basis of internal reports about components of the Group that are regularly
reviewed by the Board of Directors to allocate resources to the segments and to
assess their performance. In contrast, the predecessor IAS 14 'Segment
Reporting' required the Group to identify two sets of segments (business and
geographical), using a 'risks and rewards' approach. The implementation of IFRS
8 resulted in no significant changes to the presentation of results.
Measurement convention
The condensed consolidated half-year financial statements are presented in
sterling, rounded to the nearest thousand and are prepared on the historical
cost basis.
Use of estimates and judgements
The preparation of condensed consolidated half-year financial statements in
conformity with Adopted IFRSs requires management to make judgements, estimates
and assumptions that affect the application of accounting policies and the
reported amounts of assets, liabilities, income and expenses. Actual results
may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognised in the period in which the
estimates are revised and in any future periods affected.
2. Segment Reporting
In respect of IFRS 8 'Operating Segments', the Board of Directors believe that
the Group has one reportable group of related services and products, being
franchising (Stagecoach and SportsCoach) as no other activities are significant
enough to report separately. The SportsCoach franchising operation is reviewed
by the Board of Directors, but is not considered to be a separately reportable
operating segment as it does not represent a significant part of the franchising
segment. The Group no longer offers Mini Stages franchises and during the
period assisted the remaining Mini Stages franchisees to cease their operations.
Mini Stages franchising was not a significant operation of the Group.
Segment information is provided and reviewed on the basis of geographic areas:
UK, the home country of the parent company, and International, the franchising
operations in the Americas, Europe and the Rest of the World, being the basis on
which the Group manages its world wide interests. International operations are
considered to have similar long term economic characteristics and are aggregated
below.
The Board of Directors review network fees and the income statement in these
segments, and the statement of financial position and statement of cash flows on
a Group basis. The Board of Directors review internal management reports on a
termly basis and senior management review these on a monthly basis. The Group
does not rely on one major customer.
The Group operations for the periods are as follows:
+---------------+---------+---------------+---------+---------+---------------+---------+---------+---------------+---------+
| | Six months ended | Year ended |
+---------------+-----------------------------------------------------------------------+-----------------------------------+
| | 30 Nov 2009 | 30 Nov 2008 | 31 May 2009 |
+---------------+-----------------------------------+-----------------------------------+-----------------------------------+
| | United |International | Total | United |International | Total | United |International | Total |
| |Kingdom | | |Kingdom | | |Kingdom | | |
+---------------+---------+---------------+---------+---------+---------------+---------+---------+---------------+---------+
| | | | | | | | | | |
+---------------+---------+---------------+---------+---------+---------------+---------+---------+---------------+---------+
| Student | 36,425 | 2,896 | 39,321 | 37,274 | 2,838 | 40,112 | 36,318 | 2,609 | 38,927 |
| numbers | | | | | | | | | |
+---------------+---------+---------------+---------+---------+---------------+---------+---------+---------------+---------+
| | | | | | | | | | |
+---------------+---------+---------------+---------+---------+---------------+---------+---------+---------------+---------+
| |GBP'000 | GBP'000 |GBP'000 |GBP'000 | GBP'000 |GBP'000 |GBP'000 | GBP'000 |GBP'000 |
+---------------+---------+---------------+---------+---------+---------------+---------+---------+---------------+---------+
| | | | | | | | | | |
+---------------+---------+---------------+---------+---------+---------------+---------+---------+---------------+---------+
| Network | 12,264 | 831 | 13,095 | 12,587 | 688 | 13,275 | 27,726 | 1,709 | 29,435 |
| fees | | | | | | | | | |
+---------------+---------+---------------+---------+---------+---------------+---------+---------+---------------+---------+
| | | | | | | | | | |
+---------------+---------+---------------+---------+---------+---------------+---------+---------+---------------+---------+
| Revenue | 2,877 | 157 | 3,034 | 2,943 | 111 | 3,054 | 5,919 | 285 | 6,204 |
+---------------+---------+---------------+---------+---------+---------------+---------+---------+---------------+---------+
| | | | | | | | | | |
+---------------+---------+---------------+---------+---------+---------------+---------+---------+---------------+---------+
| Operating | 268 | (5) | 263 | 320 | (11) | 309 | 713 | (16) | 697 |
| profit/(loss) | | | | | | | | | |
+---------------+---------+---------------+---------+---------+---------------+---------+---------+---------------+---------+
| Net | 4 | - | 4 | 24 | - | 24 | 29 | - | 29 |
| financing | | | | | | | | | |
| income | | | | | | | | | |
+---------------+---------+---------------+---------+---------+---------------+---------+---------+---------------+---------+
| | | | | | | | | | |
+---------------+---------+---------------+---------+---------+---------------+---------+---------+---------------+---------+
| Profit/(loss) | 272 | (5) | 267 | 344 | (11) | 333 | | | |
| before income | | | | | | | 742 | (16) | 726 |
| tax | | | | | | | | | |
+---------------+---------+---------------+---------+---------+---------------+---------+---------+---------------+---------+
| | | | | | | | | | |
+---------------+---------+---------------+---------+---------+---------------+---------+---------+---------------+---------+
| Depreciation | 77 | 6 | 83 | 72 | 5 | 77 | 145 | 11 | 156 |
| and | | | | | | | | | |
| Amortisation | | | | | | | | | |
+---------------+---------+---------------+---------+---------+---------------+---------+---------+---------------+---------+
3. Income tax expense
The income tax expense for the six month period is charged at 30% (six month
ended 30 November 2008: 30%; year ended 31 May 2009: 28%), representing the best
estimate of the average annual effective tax rate expected for the full
financial year, applied to the pre-tax income of the six month period.
+---------------------------------------+---------+----------+---------+----------+---------+
| | Six months ended | | Year |
| | | | ended |
+---------------------------------------+------------------------------+----------+---------+
| | 30 Nov | | 30 Nov | | 31 May |
+---------------------------------------+---------+----------+---------+----------+---------+
| | 2009 | | 2008 | | 2009 |
+---------------------------------------+---------+----------+---------+----------+---------+
| | GBP'000 | | GBP'000 | | GBP'000 |
+---------------------------------------+---------+----------+---------+----------+---------+
| | | | | | |
+---------------------------------------+---------+----------+---------+----------+---------+
| UK income tax expense | 80 | | 91 | | 200 |
+---------------------------------------+---------+----------+---------+----------+---------+
4. Dividends
+---------------------------------------+---------+----------+---------+----------+---------+
| | Six months ended | | Year |
| | | | ended |
+---------------------------------------+------------------------------+----------+---------+
| | 30 Nov | | 30 Nov | | 31 May |
+---------------------------------------+---------+----------+---------+----------+---------+
| | 2009 | | 2008 | | 2009 |
+---------------------------------------+---------+----------+---------+----------+---------+
| | GBP'000 | | GBP'000 | | GBP'000 |
+---------------------------------------+---------+----------+---------+----------+---------+
| Amounts recognised as distributions | | | | | |
| to equity holders in the period | | | | | |
+---------------------------------------+---------+----------+---------+----------+---------+
| Final dividend for the year ended 31 | 199 | | 197 | | 197 |
| May 2009 of 2p per ordinary share | | | | | |
| (2008: 2p per ordinary share). | | | | | |
+---------------------------------------+---------+----------+---------+----------+---------+
| Interim dividend for the year ended | - | | - | | 49 |
| 31 May 2009 of 0.5p per ordinary | | | | | |
| share (2008: nil). | | | | | |
+---------------------------------------+---------+----------+---------+----------+---------+
| | | | | | |
+---------------------------------------+---------+----------+---------+----------+---------+
| | 199 | | 197 | | 246 |
+---------------------------------------+---------+----------+---------+----------+---------+
| | | | | | |
+---------------------------------------+---------+----------+---------+----------+---------+
| Amounts proposed as distributions to | | | | | |
| equity holders | | | | | |
+---------------------------------------+---------+----------+---------+----------+---------+
| Proposed interim dividend for the | 50 | | 49 | | - |
| year ended 31 May 2010 of 0.5p per | | | | | |
| ordinary share (2009: 0.5p per | | | | | |
| ordinary share). | | | | | |
+---------------------------------------+---------+----------+---------+----------+---------+
| Proposed final dividend for the year | - | | - | | 198 |
| ended 31 May 2009 of 2p per ordinary | | | | | |
| share (2008: 2p per ordinary share). | | | | | |
+---------------------------------------+---------+----------+---------+----------+---------+
The proposed interim dividend had not been approved by the Board of Directors at
30 November 2009 and therefore has not been included as a liability. The
comparative interim dividend at 30 November 2008 was also not recognised as a
liability in the prior year.
The proposed interim dividend of 0.5p (2008: 0.5p) per ordinary share will be
paid on 17 March 2010 to those shareholders on the register as at 19 February
2010.
5. Earnings per share
+---------------------------------------+--------+----------+--------+----------+--------+
| | Six months ended | | Year |
| | | | ended |
+---------------------------------------+----------------------------+----------+--------+
| | 30 Nov | | 30 Nov | | 31 May |
+---------------------------------------+--------+----------+--------+----------+--------+
| | 2009 | | 2008 | | 2009 |
+---------------------------------------+--------+----------+--------+----------+--------+
| Earnings | | | | | |
+---------------------------------------+--------+----------+--------+----------+--------+
| Profit for the period for basic and | | | | | |
| diluted earnings per share (GBP'000) | 187 | | 243 | | 526 |
+---------------------------------------+--------+----------+--------+----------+--------+
| | | | | | |
+---------------------------------------+--------+----------+--------+----------+--------+
| Number of shares | | | | | |
+---------------------------------------+--------+----------+--------+----------+--------+
| Weighted average number of shares | 9,932 | | 9,879 | | 9,881 |
| used for basic earnings per share | | | | | |
| ('000) | | | | | |
+---------------------------------------+--------+----------+--------+----------+--------+
| Dilutive effect of share options | 75 | | 113 | | 83 |
| ('000) | | | | | |
+---------------------------------------+--------+----------+--------+----------+--------+
| Fully diluted weighted average number | 10,007 | | 9,992 | | 9,964 |
| of shares used for diluted earnings | | | | | |
| per share ('000) | | | | | |
+---------------------------------------+--------+----------+--------+----------+--------+
| | | | | | |
+---------------------------------------+--------+----------+--------+----------+--------+
| | | | | | |
+---------------------------------------+--------+----------+--------+----------+--------+
| Basic earnings per share (pence) | 1.9 | | 2.5 | | 5.3 |
+---------------------------------------+--------+----------+--------+----------+--------+
| Diluted earnings per share (pence) | 1.9 | | 2.4 | | 5.3 |
+---------------------------------------+--------+----------+--------+----------+--------+
Basic earnings per share is calculated by dividing the profit attributable to
equity holders of the Company by the weighted average number of ordinary shares
in issue during the period.
Diluted earnings per share is calculated by adjusting the weighted average
number of ordinary shares in issue by the number of shares deemed to be issued
for no consideration (options granted to employees).
6. Related Party Transactions
The directors consider there to be no one individual or entity that ultimately
controls the Group.
Directors of the Company and their immediate relatives control 61.86% (six month
ended 30 November 2008: 59.93%; year ended 31 May 2009: 61.57%) of the voting
shares of the Company. The Directors are considered to be the key management
personnel of the Group.
Directors' rights to subscribe for shares in the company are indicated below:
+------------+-----------+-----------+-----------+--------------+
| | Date of | Exercise |Number of | Dates when |
| | Grant | Price | options | exercisable |
+------------+-----------+-----------+-----------+--------------+
| Richard | 21 Oct 01 | 42p | 47,786 | 14 Dec 01 to |
| Dawson | | | | 21 Oct 11 |
+------------+-----------+-----------+-----------+--------------+
| | 27 Jan 05 | 67.5p | 100,000 | 31 May 07 to |
| | | | | 27 Jan 15 |
+------------+-----------+-----------+-----------+--------------+
| | 4 Oct 06 | 32.5p | 35,000 | 31 May 07 to |
| | | | | 4 Oct 16 |
+------------+-----------+-----------+-----------+--------------+
| | 29 Jan 09 | 46.5p | 43,010 | 31 May 10 to |
| | | | | 28 Jan 19 |
+------------+-----------+-----------+-----------+--------------+
| | | | | |
+------------+-----------+-----------+-----------+--------------+
| Manzoor | 5 Aug 02 | 112.5p | 44,444 | 5 Aug 05 to |
| Ishani | | | | 4 Aug 12 |
+------------+-----------+-----------+-----------+--------------+
| | 27 Jan 05 | 67.5p | 100,000 | 31 May 07 to |
| | | | | 27 Jan 15 |
+------------+-----------+-----------+-----------+--------------+
| | 4 Oct 06 | 32.5p | 100,000 | 31 May 07 to |
| | | | | 4 Oct 16 |
+------------+-----------+-----------+-----------+--------------+
| | 29 Jan 09 | 46.5p | 43,010 | 31 May 10 to |
| | | | | 28 Jan 19 |
+------------+-----------+-----------+-----------+--------------+
On 5 August 2009, Richard Dawson exercised 35,000 shares under option at the
exercise price of 32.5 pence per shares, realising a gain of GBP7,000. No
options held by Directors lapsed during the period. The mid-market price of the
shares at 30 November 2009 was 49.5 pence and the range during the period was
51.5 pence to 58.5 pence.
During the period the Directors' remuneration including benefits in kind was
GBP322,904 (30 Nov 2008: GBP321,312).
At 30 November 2009, there were no payments due to Directors other than fees and
expenses in the normal course of business.
The Group continues to support and provide management time to the Stagecoach
Charitable Trust (SCT), the trustees of which include Stephanie Manuel and David
Sprigg. During the period the Group donated GBP33,710 to SCT (2008: GBP29,420).
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR BIGDDBGGBGGD
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